Performance reviews are the bane in every manager’s existence. Managers think they’re a waste of time. Employees think they’re inaccurate. But did you know having ineffective reviews can actually negatively impact a business’s success? Recurring mistakes, subpar work, and ignoring results can make your company tank.
Think back to how you’ve been approaching reviews. Consider where you might have gone wrong or what you can start doing differently to help your employees and business succeed.
Focus On The Future
Go ahead, bring up the past. Employees need to know if they’re not doing something right and how to fix any issues. But don’t make performance reviews an opportunity to bring skeletons out of the closet.
Talking only about the past is just talking about events no one can go back and change. Spin these issues around and give the employees ways to improve in the future. According to this study, 70% of workers want reviews that help them develop and grow. So create objectives and goals that employees can work towards to make these reviews more efficient.
Giving employees the opportunity to improve means higher quality of work and productivity can be achieved.
Compare To Industry Standards
Most companies compare employees to their peers. Your employees might have a high production rate, but how is the quality when compared to competitors? Peer comparison doesn’t let companies know what they need to do in order to beat out their competitors.
Do market research on industry standards. Figure out what your competitors are doing, their quality of work, and how they’re accomplishing these tasks. Races aren’t won through blind movement. Every person and company needs to be aware of where their competition stands in order to surpass them.
Having employees make industry standards a goal gives your company the upper hand in the market.
Effort Doesn’t Equal Success
A study by Globoforce revealed that 63% of employees feel like performance reviews are not a true indicator of performance. Managers can see how hard an employee works, but they don’t want to be the bad guy by giving the hard-working employee a below-average review for their performance.
Yes, effort shouldn’t go unnoticed. But effort doesn’t always mean great results. An employee can work exceptionally hard, but what good is that effort when the end result is mediocre or constantly doesn’t bring in sales?
Giving an inaccurate performance review (especially based off of effort) is just as good as lying to your employee. Be fearless in your feedback. Let employees know about their lackluster performance and provide solutions to the problem.
Performance reviews aren’t just indicators of how an employee is doing. It also gives managers an insight into the current and future path of the company. Rethink how you approach these reviews in order to let your company succeed.